Portuguese conglomerate RAR Sociedade de Controle (Holding) SA will buy out the 40 percent stake of its Canadian partner, CCL Industries Inc., in their European packaging joint venture, ColepCCL Embalagens e Enchimentos SA.
Toronto-based CCL Industries, a specialty packaging and labels group, agreed to sell its share in the pan-European venture to RAR of Oporto, Portugal, for 100 million euros ($142 million) cash. The deal is due to be completed by the end of November.
RAR said it is considering seeking new partners ``to add value to ColepCCL's development.'' The Portuguese group said it is focused on expansion in areas of potential growth.
ColepCCL, based in Vale de Cambra, Portugal, employs around 2,100 at five packaging, contract filling and manufacturing plants located across Europe - in Poland, Germany, Portugal, Spain and the United Kingdom. It recorded annual sales of nearly 325 million euros ($408 million) in 2006.
The ColepCCL packaging portfolio includes injection molded plastic components such as caps, handles and closures; blow molded containers from 4.5 ounces to 2.6 gallons of capacity, for markets including cosmetics and personal care, lubricants, and silk-screen and adhesive label decoration.
The joint venture also manufactures aerosol cans and other industrial metal packaging.
The plastic packaging operation is concentrated at its Vale de Cambra plant, where the firm runs 11 injection presses and 16 blow molding machines, according to a ColepCCL spokeswoman.
CCL, which sold its North American custom manufacturing division in 2005, wants to focus on other packaging areas.
``ColepCCL has many opportunities for both internal growth and acquisitions; however, upon evaluating our own growth opportunities, we have decided to focus our investment dollars in the businesses that we control,'' said Donald Lang, vice chairman and chief executive officer of CCL Industries.
The joint venture was formed in 2004.
CCL manufactures pressure-sensitive, shrink sleeve and in-mold labels; aluminum containers; and plastic tubes, for leading global companies in the home- and personal-care, health-care and specialty food and beverage sectors. The Canadian firm employs 5,000 and operates 49 production plants in North America, Europe, Latin America and Asia.
RAR is a diverse Portuguese group, formed in 1962, which has built up a business portfolio ranging from sugar refining and food manufacture to insurance, property and tourism. Earlier moves RAR made into plastics, textiles and coffee were subsequently abandoned.